The Korea Financial Investment Association said on the 22nd that investors in domestic equity and domestic mixed equity funds who plan to use redemption proceeds within this year must apply for redemption by Dec. 24.
A domestic equity fund is a fund that invests more than half of its assets in domestically listed stocks. A domestic mixed equity fund primarily holds stocks while also including other assets such as bonds, and likewise has a domestic stock share of 50% or more.
This notice follows the schedule in which trading for the year ends on the 30th due to the Korea Exchange (KRX) being closed on Dec. 31, with the market reopening on Jan. 2 next year.
Generally, for domestic equity and domestic mixed equity funds with a stock allocation of 50% or more under the collective investment regulations, if redemption is applied for before 3:30 p.m. on the 24th, the disclosed base price on the 26th will apply and the redemption proceeds will be paid on the 30th. If the application is made after 3:30 p.m., the disclosed base price on the 29th will apply under the after-hours transaction system, and the payment date remains the 30th.
The Korea Financial Investment Association noted that for some funds, such as overseas investment funds, the redemption processing method may differ under the collective investment regulations, and urged investors who need to withdraw redemption proceeds within the year to check in advance with their transaction financial institution.